One of the keys to successful investing is making sure your investments are well-matched to your time horizon. For example, if you have a short-term goal, like buying a house in two years, you need to invest differently than if you’re planning for a long-term goal like generating monthly income throughout retirement.
Unlike in the past, current longevity expectations mean that today’s retirements can last three decades or more. That’s why we remind today’s retirees that your time horizon is not the day you retire — it’s the day you die. Even though you’re retired, your portfolio needs to keep working hard for you year after year.